East 33 : Appendix 4C and Detailed Company Update

East 33 Limited

ASX ANNOUNCEMENT

For personal use only

For immediate release

26 April 2022

Appendix 4C and Detailed Company Update

East 33 (ASX:E33) ("East 33" or "Company") provides the attached Company Update and Appendix 4C, Quarterly Cash flow report.

This Announcement is authorised for release by the Board

Announcement Ends

About East 33 Limited

East 33 is dedicated to pioneering the world's best oyster culture, by empowering the people behind it, caring for the places that support it, and delivering moments to be savoured. East 33 represents quality, a dedication to the authentic and an inspired future, focused on delivering a moment of joy.

East 33 is the largest vertically integrated Sydney Rock Oyster producer, processor, and supplier. Operations span all elements of the Sydney Rock Oyster industry from hatchery, nursery, and production farmers to processing facilities, eCommerce, ShellarDoor™ restaurant program, and international trade.

East 33's current operations are based in the Wallis Lake, Port Stephens and Manning River regions of NSW, and over 130 years of collective of farming knowledge. Learnings are being harnessed to deliver the next stage of improved breeding, technology, and sustainable farming techniques to propel the industry for generations to come.

Sydney Rock Oysters are extremely rare natively thriving in just 41 locations on the east coast of Australia centred on latitude 33 degrees - providing the namesake for East 33 Limited.

For further information, please contact:

Guy Burnett (Company Secretary),[e-mail], [phone]

Registered address: 12 Point Road, Tuncurry, 2428, NSW

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Contents

Revised Outlook Presentation

03

Q3 FY22 Appendix 4C

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Material External Factors Impacting FY22 & Outlook

#	Significant External Factors	Impact	Management Mitigation
1	COVID	Closed restaurants in Q1/Q2 FY22	• Pivoted Sales Channels to maximize sales rate
2	Labour Shortfall & Structural change to labour costs	Change to labour availability and fundamentally increased labour rates	• Increased pricing at farm gate & distribution price to enable a response to change to labour rates • Recruited and secured labour force to fulfil the business plan • Move entire workforce to 7 day per week two shift to eliminate overtime and lower labour rates
3	Unprecedented rainfall in Sumer 2021/22	Wettest summer in 30 years - resulted in oysters upstream having prolonged exposure to low/no salinity water Reduced entire industry availability of Sydney Rock Oysters	• Multi Estuary asset position ensures that majority of inventory was not impacted • On water infrastructure designed to withstand floods • Ramped up pacific oyster trading to meet market demand
4	QX in Port Stephens	Never occurred before in Port Stephens, results in: - Stock loss - Structural change to farming practices	• Multi Estuary asset position ensures that majority of inventory was not impacted • E33 Hatchery is largest producer of QX resistant stock - in train process of migrating all inventory to QX resistant

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FY22 Q3 Trading Review & FY22 Q4 Outlook

• • Tracking inline of forecast in early Q3

• • Late Q3 impacted by prolonged rain

• • Continued rain forecast into Q4 and an early early loss of oyster condition reduces outlook

• • Closures in all major producing areas reduced entire Sydney Rock Oyster supply limiting trading capability

• • East 33 ramped up substituting to Pacific Oyster to meet market demand

Second Half - FY22 Guidance	Q3 FY22 Actual	Withdrawn FY22 Projection
Harvest Volume Guidance (million oysters)	4.5	2.2	8.7
Harvest Volume Actual (million oysters)	Pending Q4	2.2	Currently - 6.7
Group Operating Revenue	$15.4	$5.6m	$26.5m
EBITDA	$0.0	($0.8m)	($1.2)m

Please note: East 33 has withdrawn FY22 Guidance

East 33 trading Volume of Sydney Rock Oyster vs. Pacific Oysters

Dec-21

Jan-22

Feb-22

Mar-22

Apr-22

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